S&P: PPL unchanged

Standard & Poor's said that PPL Corp.'s (BBB/stable) announcement of an outage at Unit 1 of the Montour Coal-fired generation station as negative for credit but does not affect the company's outlook or ratings.

According to S&P, the outage of a unit that produces about 12.5% of PPL Energy Supply LLC's eastern base-load generation during peak summer months will hurt the company's cash flow, which it anyway expects will experience some downward pressure through 2009 from ongoing capital expenditures and upward escalations in fuel costs.

Still, longer-term market fundamentals support the ratings, the agency noted.

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